How to know when you need really need a payday loan
You’re in the office dealing with a million things when your cell phone rings. You glance towards it and your heart drops as the name of your daughter’s school flashes onscreen. The moment you answer, the serious tone on the line reveals that all is not well. Sarah, the teacher tells you, has fallen from a tree and been taken to the hospital. Panic sets in as you rush from the office to be by her side. Your heart is racing, you feel feverish, and your thoughts swirl with dread… It’s not only your child’s wellbeing worrying you but you’re out of money until payday. If the injury requires a specialist, what will the medical attention cost?
Emergency situations rear their ugly heads into life like rude interruptions. There are times when you need cash in a hurry and there isn’t enough time to go through extensive loan procedures. So what do you do?
A payday loan as an emergency solution
Payday loans provide peace of mind in times of distress. Whether you need to cover urgent car repairs or an unexpected bill, payday loans can guard against the prospect of not being able to cover an emergency cost. However, a loan in any form is an expensive payment plan. It provides instant relief but causes greater financial strain in the long term so the option should be utilized as a last resort.
Options worth trying before taking out a payday loan
It’s important to exhaust all other options before looking into a payday loan, for instance:
- Speak to your boss about the possibility of getting a small advance on your paycheque
- Offer to work overtime for extra money
- Consider the possibility of taking on a side job or project that could bring in quick money — from babysitting or housesitting to selling pies at a Saturday market
- Ask a trusted friend or family member who is in a good financial position about the possibility of loaning the money from them, but only if you’re absolutely certain you can pay it back
Questions you need to ask yourself before taking out a loan
Payday loans can be abused. If users take out multiple loans they ultimately cannot afford, it sets off a vicious cycle of debt. Before venturing into payday loan territory, it’s vital to ask yourself:
- Is this inability to cover a cost a once-off, a rare occasion or a recurring shortfall? It may feel as if you urgently need some money but if you’re constantly short of money you may need to review your budget and your earning potential to ensure that you’re making more than you spend
- Can you really afford it? If you’re in any debt already do not take out a loan to repay it
- Are you entering into a cycle of debt? Remember that the repayments on your loan alongside the fees on the payment add up, making the cost of your shortfall greater than it was before. If you’ve taken out multiple loans and are in serious debt, seek financial advice to learn how to deal with your debt and better manage your money in the future.
If you are in a position to take out a payday loan, find a micro-lender that you can trust
When you need extra cash before payday, and you’ve found no alternative payment plan, and you’ve honestly answered all the necessary questions, then the next step is to find the most cost-effective and trustworthy micro-lender.
You might not know how much extra money you need so chances are you’ll apply for the maximum amount. Whereas most micro lenders will charge you interest and fees on the whole amount you’ve applied for, African Advantage will only charge interest and fees based on the amount you use. With their exemplary code of ethics, low fees and interest rates and professional card-based system, consider African Advantage — offers a smart alternative to payday loans.
